Bumi Armada JV bags RM8.8b job from ONGC of India

Other monetisation plans are at advanced stages, which leads to UOB Kay Hian Research

KUALA LUMPUR: Bumi Armada Bhd's joint venture has secured a contract from India's  Oil and Natural Gas Corporation Ltd (ONGC) to provide a floating production, storage and offloading (FPSO) vessel.

It said on Monday the JV  Shapoorji Pallonji Bumi Armada Godavari Private Ltd received a notification of award for the nine-year contract worth US$2.1bil (RM8.8bil) from ONGC on May 2.

ONGC has an option to extend the contract for an additional seven years on a yearly basis at an aggregate contract value of about US$655mil (RM2.7bil), if all the extension options are exercised.
 
Bumi Armada owns 30% of the JV company while Shapoorji Pallonji Oil & Gas Private Ltd of India. ONGC is India's state owned oil company listed on the Bombay Stock Exchange and the National Stock Exchange of India Ltd.
 
The contract will be operated by the JV comnpany for the ONGC NELP Block KG – DWN 98/2 development project cluster-II field located on the east coast of Kakinada, offshore India.